Despite a soft market for anthracite coal, Reading & Northern reported on November 4 that its freight traffic has grown over its record-setting 2015 base: Merchandise traffic (non-coal) is up almost 15%. Its passenger excursion business, which saw a record 100,000 visitors in 2015, is also running 15% ahead of last year's pace.
In order to handle this traffic growth Reading & Northern says it has embarked on a significant program of capital expenditures and hiring.
In the last 60 days, Reading & Northern added six locomotives to its fleet bringing the total active locomotives to 36. They acquired four EMD MP15 locomotives at a Norfolk Southern auction. These locomotives are 1500 horsepower four axle locomotives and will be immediately used in freight service. This is the first of these type to be added to the roster. Reading & Northern also added two additional EMD GP39RNs. These locomotives are 2500 horsepower four axle locomotives, which brings the total of this type of locomotive to six. These locomotives will primarily be used in passenger excursion service.
To handle anticipated future growth in its anthracite business Reading & Northern just closed on a deal to purchase 156 used steel open-top hopper cars. This acquisition brings the total car fleet to 1179 cars: open-top and covered hoppers, flat cars, box cars and gondalas.
Its Maintenance of Way forces have been busy upgrading our railroad to handle more traffic at higher speeds. In addition, they completed major track projects at two new Reading & Northern freight customers, with expected growth of excess of 1000 cars a year. This is in addition to a track project for another customer earlier in 2016. Its MOW forces are also installing 15,000 ties, 10,000 feet of new rail, constructing 10,000 feet of new sidings, surfacing 89 miles of track, and and additional 15 miles of signal system of previously un-signaled territory. These upgrades are the start of an extensive upgrade to reinstall over 100 miles of a Centralized Traffic Control signal system remotely controlled from its Port Clinton dispatch center at an estimated cost of over 10 million dollars.
They also announced hiring of over 20 full-time freight railroad employees to assist in handling all of the traffic. During this past decade, Reading & Northern reports it has doubled its workforce.